★ Baillie Gifford Investment Strategy and Key Investment Issues

• Baillie Gifford, established in 1907, is a long-standing British asset management firm known for its long-term growth stock investment strategy.
• The company has demonstrated its success by investing in major overseas growth stocks such as Amazon, Tesla, and NVIDIA for an extended period.
• With a history of holding Tesla for 11 years and NVIDIA for over 8 years, it showcases a strong commitment to long-term investing.
• Recently, Baillie Gifford has been streamlining some of its existing holdings while exploring new m7 investment opportunities.

★ m7 Transition Point and Changes in Investment Strategy

• The term m7 refers to cases where small companies with poor past performance achieve remarkable growth in the long term.
• Investment experts believe that since many analysts are already paying attention to m7, the strategy of investing early and holding long-term, as with Tesla or NVIDIA, is no longer a new opportunity.
• Accordingly, Baillie Gifford intends to sell past popular stocks such as Tesla and NVIDIA and shift its strategy to invest in new companies with fresh growth engines.

★ New Investment Opportunity: Analysis of Apple Robin

• One of the emerging m7 candidates that Baillie Gifford is watching is ‘Apple Robin,’ which operates in two business areas.
• The first is the mobile game development and distribution business, based on the stable cash flow secured through past game production and distribution.
• The second is an advertising platform, conducting customized advertising orders and distribution using AI-based algorithms in the AdTech field.
• In the recent earnings announcement of Apple Robin, the 75% year-over-year increase in advertising revenue was notable, leading to a dramatic rise in stock prices.
• While mobile game-related revenue increased by 3%, the significant gap in advertising revenue highlighted the company’s growth potential.

★ CTV Advertising Market and the Future Outlook of AI Technology

• Unlike the traditional TV advertising market, the CTV (Connected TV) advertising market is growing with personalized advertising as its core.
• Experts predict that the CTV advertising market will surpass the traditional advertising market around 2028, and the digital advertising market combined with AI technology will expand rapidly.
• Apple Robin is actively introducing AI technology into its AdTech advertising platform to adapt to these changing times, gaining a competitive edge in customized advertising services and becoming one of the world’s largest AdTech companies.

★ Points to Consider in Investment Strategy and Risk Management

• Investment gurus like Baillie Gifford do not blindly bet on seemingly promising stocks but conduct thorough fundamental analysis to minimize risks and pursue long-term investments.
• Since the excess return of the entire stock market exceeding the U.S. 10-year Treasury yield appears in only 1% of global stocks, it is necessary to be more cautious in selecting initial investment targets.
• Investment experts like Druck Miller are also considering pharmaceutical companies that utilize cutting-edge technologies such as AI, deploying strategies that are ahead of the curve in the overall investment portfolio.
• This investment strategy is aligned with Baillie Gifford’s reason for streamlining existing popular stocks and finding new m7s, and it is expected to play an important role in generating long-term returns in the future.

< Summary >

• Baillie Gifford is a long-standing British asset management company that has been investing in growth stocks such as Tesla and NVIDIA for a long time. Based on their experience, they are streamlining existing popular stocks and seeking new m7 investment opportunities.
• m7 is an outlier stock that initially experienced poor performance but later achieved exponential growth, and Baillie Gifford is paying attention to ‘Apple Robin’ as one of these emerging companies.
• Apple Robin is growing through two core businesses: mobile games and advertising platforms, and is in a favorable position to generate future revenue, especially with the expansion of the AI and CTV advertising markets.
• In investment strategy, thorough fundamental analysis and careful selection of initial investment targets are important beyond simple betting, and this approach is considered the key to achieving long-term excess returns.

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Tesla → https://nextgeninsight.net/?s=Tesla
Apple → https://nextgeninsight.net/?s=Apple

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